We are right in the thick of our mini-series focusing on why women make the mistakes we make that prevent us from making and creating a business that will earn over a million dollars in revenue annually. What in the heck is holding us back? We are now in episode number eight of this series and we are talking today about the cashflow mistake.
Picture this: you have just thought of an amazing idea. I mean, light bulb moment. So you sit down, your research, you plan, you learn your market, you figure out how to market that product, etc. You are so excited. So the next day you go into your day job, and you quit. I mean, you are so amped, you’ve done the research, you’re ready to roll. Is that what we do?
Today, I’m advising you to NOT take that pathway. Do not quit your day job. This is a big part of the cash flow mistake.
All businesses must have a steady flow of cash coming in as means of supporting that business. In the beginning, YOU, your money, your day job, your part-time job, your spouse’s job, etc. someone is actually putting their money into this business. If you stop that flow of cash before your business can successfully sustain the cash flow on its own, you will not be able to grow.
The old saying “it takes money to make money” is true. It doesn’t take a lot in some instances, but it does take some. When we walk away from our income stream to create a new one, we have to very quickly figure out how to make that business generate revenue, or not only will the business fail, but we won’t be able to take care of our basic needs.
As a result, we start making bad, rushed, damaging decisions in our business to simply start to generate revenue. We start focusing on making money instead of making a difference.
When you are focused on money, you look for short-term wins instead of long-term wins in your business. Do you make short-term decisions like which product will sell best right now? What price point can I offer to make money now?
Every decision is about today. But in a business, every decision needs to be about today and tomorrow, so that you can have a business that is around tomorrow.
Today’s challenge is to look in the mirror and ask yourself if you have been making short-term decisions to win today, vs. playing the long game and creating a long-term sustainable business. If you quit your day job and you are struggling, consider a part-time job. Find ways to remove the stress of money so you can build a business that makes a difference.